EVALUATION OF THE FINANCIAL STABILITY OF THE INSURANCE ORGANIZATION

2020 ◽  
pp. 68-78
Author(s):  
Oleg Georgievich Blazhevich
Keyword(s):  
Capital Structure ◽  
Financial Stability ◽  
Load Level ◽  
Joint Stock Company ◽  
Insurance Company ◽  
Working Capital ◽  
Stock Company ◽  
Ability To Pay ◽  
Essential Component ◽  
Equity Ratio

The article studies the financial stability of a particular insurance organization. The financial stability of the insurance company is an essential component of its activities and characterizes the ability to pay off its obligations on time and in full. The analysis of financial stability is defined as an independent object of evaluation, which explores the structure of the formation and use of capital. To assess the financial stability of the insurance company, a set of indicators was formed, including the following ratios: level of equity, ratio of equity to liabilities, ratio of insurance premiums and insurance reserves, ratio of working capital and non-current capital, level of permanent capital, ratio of equity and insurance reserves, level of debt load, level of insurance reserves. The insurance public joint-stock company RESO-Garantia was chosen as the object of analysis. The analysis showed that the capital structure in the insurance company under consideration is not optimal. The company has a shortage of insurance reserves, which is offset by equity.

scholarly journals MANAGEMENT OFCASH FLOWS OFINVESTMENT ACTIVITY OFENTERPRISES

2017 ◽  
pp. 111-120
Author(s):  
Petro RENDOVYCH
Keyword(s):  
Stock Market ◽  
Financial Management ◽  
Financial Stability ◽  
Cash Flows ◽  
Internal Source ◽  
Joint Stock Company ◽  
Stock Company ◽  
Investment Activity ◽  
Operational Activity ◽  
Market Relations

Introduction. In joint-stock companies there is a problem of shortage of money not only for carrying out of investment activity, but also for maintenance of sufficient level of the operational activity. One of the main instruments of a market economy that contributes to the formation of a cash flow system is the stock market. The purpose ofthe article is to study some aspects ofcash flow management in the system of financial management, to characterize cash flows of joint stock companies, which determine the potential of forming their internal source of financing for their development and provide the formation of additional investment resources for the implementation of financial investments in the securities market. Results. One of the important tasks of the Ukrainian economy development is the development of mechanisms for the formation of investment-attractive and innovative-oriented joint-stock companies. The development of market relations requires an increase in the effectiveness of their activities. The assessment of the effective activity of the entity was determined by analyzing the profit of the enterprise, and subsequently, economists supplemented its coefficients of liquidity, solvency, financial stability. The analysis and identification ofthe reserves for increasing profits is also carried out by analysts of the stock market in orderto furtherstimulate the investor. Conclusion. We believe that the analysis of cash flows by their dynamics and structure allows us to identify the negative factors of the organization of financial and economic activity of the entity, immediately reflects the size, quality and direction of change in the financial state of the joint-stock company, and also contributes to the development of concrete measures for its improvement. Since inbound and outbound cash flows of investments are the main factors in creating the value ofenterprises, which ultimately reflects the management of the result of investment activity in terms of Modern Value Approach, therefore, in our view, the process of reproduction of capital and the formation of investment flows can be expressed through the movement of value in the field Investment activity. In the process of studying investment flows of enterprises, it was found that the level of investment attractiveness of enterprises depends on the efficiency of the movement oftheirinvestment cash flows.

scholarly journals MODAL KERJA, SIZE, STRUKTUR MODAL DAN RETURN ON ASSET: STUDI EMPIRIS PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI

2021 ◽  
Vol 16 (2) ◽  
pp. 99
Author(s):  
Fransiskus Rian ◽  
Gendro Wiyono ◽  
Mujino Mujino
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Multiple Linear Regression Analysis ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Return On Assets ◽  
Equity Ratio

ABSTRACT The purpose of this study is to examine whether working capital variables, size, and capital structure affect the return on assets. The population in this study are manufacturing companies in various sub-sectors proposed in the Indonesia stock exchange in 2016-2018. The type of data used in this study is secondary data from the company's annual financial statements as a sample that is used and processed using SPSS 16.00. This research uses the classic assumption test and the data analysis method used is multiple linear regression analysis. The results of the study show how working capital (ratio using current ratio, accounts receivable turnover, and net working capital), size, and capital structure (tested using a debt to equity ratio) are considered to compare asset returns.Keywords: working capital, size, capital structure, return on assets ABSTRAK Tujuan dari penelitian ini adalah untuk menguji apakah variabel modal kerja, ukuran, dan struktur modal berpengaruh terhadap return on assets. Populasi dalam penelitian ini adalah perusahaan manufaktur di berbagai sub sektor yang diusulkan di Bursa Efek Indonesia tahun 2016-2018. Jenis data yang digunakan dalam penelitian ini adalah data sekunder berupa laporan keuangan tahunan perusahaan sebagai sampel yang digunakan dan diolah menggunakan SPSS 16.00. Penelitian ini menggunakan uji asumsi klasik dan metode analisis data yang digunakan adalah analisis regresi linier berganda. Hasil penelitian menunjukkan bagaimana modal kerja (rasio menggunakan rasio lancar, perputaran piutang, dan modal kerja bersih), ukuran, dan struktur modal (diuji menggunakan rasio utang terhadap ekuitas) dipertimbangkan untuk membandingkan pengembalian aset.Kata kunci: modal kerja, ukuran, struktur modal, return on assets

scholarly journals The Features of Capital Management in Joint Stock Companies

2021 ◽  
Vol 2 (517) ◽  
pp. 266-273
Author(s):  
O. V. Kvasha ◽  
Keyword(s):  
Financial Stability ◽  
Theoretical Aspect ◽  
Joint Stock Company ◽  
Capital Management ◽  
Stock Company ◽  
Advantages And Disadvantages ◽  
Managerial Decisions ◽  
Economic Entity ◽  
Definition Of ◽  
Classical Economic

The article is concerned with studying of the features of capital management in joint stock companies. The concept of joint stock capital as an economic category is considered. The approaches to determining the essence of the concept of «joint stock capital» are analyzed. The system of management of joint stock capital of enterprise is presented, it is determined that the process of joint stock capital management is an aggregate of methods, forms and instruments for attracting funds from various sources in accordance with the needs of the development of the joint stock company. The formula for assessing the market value of enterprise is considered. The process of formation of equity of the enterprise is analyzed; the advantages and disadvantages of the types of sources of this type of funding are described. The peculiarities of attracting borrowed capital are studied and the influence of this method on the financial stability of the joint-stock company is described. The peculiarities of joint stock capital management on the example of PJSC «Motor Sich» have been characterized and conclusions have been drawn on optimizing the policy of capital management in joint stock companies. On the basis of the research of the theoretical aspect of the essence of the joint stock capital it is determined that the system of capital management in a joint stock company is characterized by interdependence and consistency of various subsystems and elements upon which depends the efficiency of functioning of the whole system, and, accordingly, the final result of effective capital management of the joint-stock company. Prospects for further research in this direction are the definition of new interdependences between the elements that influence the adoption of managerial decisions in the management of joint stock capital. Further development of the theory of joint stock capital management in the context of behavioral economics can lead up to the replacement of classical economic models of behavior of the economic entity and up to the creation of a new mechanism for managing the joint stock capital of the enterprise.

scholarly journals PENGARUH CAPITAL STRUCTURE DAN WORKING CAPITAL MANAGEMENT TERHADAP PROFITABILITAS

2017 ◽  
Vol 1 (2) ◽  
pp. 42-46
Author(s):  
Ratu Dintha IZFS ◽  
Ahim Surachim
Keyword(s):  
Capital Structure ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Significance Level ◽  
Return On Equity ◽  
Verification Method ◽  
Statistic Model ◽  
Equity Ratio ◽  
The Impact

This research was intended to know the impact of capital structure and working capital management on the profitability of  PT. Indosat Tbk in the period of 2005-2014. This research applied descriptive and verification method concluded in time series design. The statistic analysis that was used in this study was doubled linear regression at 5% significance level. Based on the findings, it was provable that regression statistic model could applied in noticing the effect of capital structure and working capital structure on profitability through F-test. Moreover, T-test showed that capital structure negatively affected the profitability in significant manner. Lastly, working capital management was identified to be a factor that did not affect the profitability.  Keyword : Capital Structure, Debt to Equity Ratio (DER), Working Capital Management, Working Capital Turnover (WCT), Profitability, Return on Equity (ROE).

scholarly journals ANALISIS PENGARUH LIKUIDITAS DAN PROFITABILITAS TERHADAP STRUKTUR MODAL PADA PERUSAHAAN FOOD AND BEVERAGE DI BURSA EFEK INDONESIA

2013 ◽  
Vol 2 (1) ◽  
Author(s):  
Agus Rahman Alamsyah
Keyword(s):  
Capital Structure ◽  
Return On Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Rate Of Return ◽  
Working Capital ◽  
Food And Beverage ◽  
Equity Ratio ◽  
Acid Test

<p><em>This research aims to empirically examine the influence of liquidities and profitabilities to capital structure. Samples are 15 food and beverage sectors listed in Jakarta Stock Exchange (JSE) during 2006-2010. Multiple regressions are used to test hypotheses.  Financial ratios used in the liquidity ratio and profitability ratio, variable in this study are independent and dependent variables. The independent variable consist of Current Ratio (CRR), Cash Ratio (CAR), </em><em>Quick-acid Test Ratio (QUR), Working Capital to Total Assets Ratio (WCR), Net Profit Margin (NPM), Rate of Return on Investment (ROI), and Rate of Return for the Owner-equity (ROE), and the dependent variable consist of Debt to Equity Ration (DER) and Debt to Assets Ratio (DAR). Results show that the liquidity ratio (</em><em>cash ratio and working capital to total assets ratio) have negative impact on companies’ capital structure (debt to equity ratio and debt to assets ratio), but liquidity ratio is </em><em>quick-acid test ratio has positive impact on companies’ capital structure (debt to equity ratio and debt to assets ratio). </em><em> However profitability ratio (</em><em>rate of return on investment) have negative impact on capital structure (debt to equity ratio and debt to assets ratio) to support the pecking order theory. The theory stated that the higher profitability the more retained returns so capital structure become lower.</em></p> <p><strong><em> </em></strong></p> <p><strong><em> </em></strong><em> </em></p> <p> </p>

CORPORATIONS' OWNERSHIP CONCENTRATION: THEORETICAL ASPECT

2021 ◽  
Vol 1 (21(49)) ◽  
pp. 33-40
Author(s):  
Olha Rudenok
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Theoretical Aspect ◽  
Ownership Concentration ◽  
Joint Stock Company ◽  
Minority Shareholders ◽  
Stock Company ◽  
Significant Control ◽  
Scientific Papers ◽  
History Of

Corporate governance and its mechanisms, including ownership structure, have a long history of research. Many scientific papers show that when the ownership concentration grows above a certain limit, it not only directly affects the performance of firms and their value but also indirectly affects the mechanism of corporate governance. In the case of the concentration of ownership, majority shareholders can gain significant control over the firm to obtain private benefits from minority shareholders. In such circumstances, special attention should be paid to the concentration of ownership and its relationship with the activities of the firm and its value. The article highlights the essence of the concept of "ownership concentration" from the standpoint of corporate governance and from the standpoint of the characteristic of the corporations' capital structure. The peculiarities of corporate governance in Ukraine and in the world are generalized with their division into internal and external mechanisms. The concentration of ownership as a tool of corporate governance is determined since the fact that there are shareholders with significant stakes that have the necessary incentives and resources to monitor and discipline management. It is noted that the ownership concentration can be considered as a tool to compensate for the shortcomings (ineffectiveness) of external mechanisms of corporate governance. As a quantitative indicator of capital structure, the ownership concentration is measured by the number of shareholders and the percentage of their individual or collective ownership of shares, considering exercising control influence on the joint-stock company. The threshold of concentrated ownership is indicated, based on Ukrainian legislation and existing approaches.

scholarly journals ARTIFICIAL INTELLIGENCE IN ANALYZING THE CAPITAL STRUCTURE EFFECT ON FINANCIAL STABILITY

2020 ◽  
Vol 1 (383) ◽  
pp. 277-287
Author(s):  
S. Savina
Keyword(s):  
Regional Integration ◽  
Financial Stability ◽  
Financial Analysis ◽  
Financial Resources ◽  
Stable Operation ◽  
Complex Method ◽  
Working Capital ◽  
Financial Situation ◽  
Return On Equity ◽  
Equity Ratio

Financial stability is an important measure used by stakeholders to assess the financial situation of an entity concerned. Economic worries caused by internal business issues, global processes, and international economic (regional) integration may increase the entity’s exposure to external factors. Financial stability considers the entity’s dependence on creditors and investors, i.e. the debt-to-equity ratio. Significant liabilities that are not fully covered by the entity’s own liquid funds create preconditions for bankruptcy should any large creditor demand settlement of any debts owed to it. However, borrowed funds can significantly increase the return on equity. Therefore, in analyzing financial stability, it is very important to use a system of indicators that indicate the entity’s future risks and profita-bility. Financial stability is the principal objective of financial analysis. The nature and scope of such economic analysis are aimed to determine the entity’s internal capacities, means, and methods for improving the entity’s financial stability. Thus, financial stability is understood as the entity’s guaranteed solvency and creditworthiness resulting from the effective formation, distribution, and application of financial resources in the entity’s business operations. Financial stability is assessed based on the working capital to inventory ratio and debt to equity ratio. Business entities are independent in establishing business relationships with their contract partners; therefore, they are fully responsible for the decisions they make. The increasing importance of financial analysis for the entity’s own financial situation and for its business partners is explained by the increasing demand for additional sources of business financing and the requirement to increase the productiveness of capital resources. Entity’s financial stability analysis should not focus on the current financial activities only. It should also determine what measures should be taken on a continuous basis to maintain and improve the entity’s financial situation. Both current and future stability, i.e. the entity’s sustainability, must be ensured to provide conditions for state-of-the-art competitive production. An entity is a complex system consisting of many subsystems; therefore, a complex method must be applied to analyze its stability, i.e. using a system of financial stability indicators. Present-day diversity of financial stability indicators, including both absolute and relative indicators, makes the analysis difficult and overcomplicated, creating difficulties in combining the findings of the analysis to make conclusions about the entity’s financial stability. Absolute indicators, namely equity, borrowed capital, assets, cash, accounts receivable and accounts payable, profit, play an important role in the analysis of an entity’s financial stability. Equally important are absolute indicators calculated in the analysis of financial statements: net assets, working capital, working capital to inventory ratio, stable liabilities. These indicators are criterial as they are used to establish the criteria used in the financial analysis. An entity should have a flexible structure of financial resources and, if necessary, be able to borrow funds. Therefore, another manifestation of an entity’s potential financial stability is its creditworthiness, i.e., the ability to settle its payment obligations when due. Thus, an entity is considered creditworthy if it meets a certain requirement for granting a loan and is able to repay the loan when due subject to any interest accrued. This concept is closely related to the concept of financial stability and shows whether the company is able to raise funds from different sources to repay its debts. Credit analysis may predict solvency and is closely related to the analysis of solvency, financial stability and return on equity. Entity’s stable operation, high profitability and working capital turnover also guarantee loan repayment to a certain degree.

Studying Demand for Institutes of Corporate Governance: Legal Aspects

2003 ◽  
pp. 50-61 ◽  
Author(s):  
T. Medvedeva ◽  
A. Timofeev
Keyword(s):  
Corporate Governance ◽  
Legal Aspects ◽  
Joint Stock Company ◽  
Federal Law ◽  
Stock Company ◽  
Open Joint Stock Company ◽  
Open Joint ◽  
Market Relations ◽  
Corporate Legislation

The article analyzes legal aspects of institutes of corporate governance. Different draft laws "On Joint-Stock Companies" are considered which reflected interests of separate groups of participants of market relations. Stages of property redistribution are outlined. The advantages of the model of the open joint-stock company are formulated. Special attention is paid to the demand for legal institutes of corporate governance as well as to the process of accepting the Federal Law "On Entering Amendments to the Federal Law "On Joint-Stock Companies"" which was enacted in 2002. The article contains proposals directed at improvement of corporate legislation.

Sign in / Sign up

Export Citation Format

Share Document